DHS awards $66.7M contract for radiation detection equipment maintenance to Leidos, Inc
Contract Overview
Contract Amount: $66,713,362 ($66.7M)
Contractor: Leidos, Inc.
Awarding Agency: Department of Homeland Security
Start Date: 2024-09-15
End Date: 2027-03-15
Contract Duration: 911 days
Daily Burn Rate: $73.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PREVENTATIVE AND CORRECTIVE MAINTENANCE OF RADIATION DETECTION EQUIPMENT (RDE) AND LARGE SCALE (LS) NON- INTRUSIVE INSPECTION (NII) EQUIPMENT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92121
Plain-Language Summary
Department of Homeland Security obligated $66.7 million to LEIDOS, INC. for work described as: PREVENTATIVE AND CORRECTIVE MAINTENANCE OF RADIATION DETECTION EQUIPMENT (RDE) AND LARGE SCALE (LS) NON- INTRUSIVE INSPECTION (NII) EQUIPMENT Key points: 1. Contract focuses on essential maintenance for radiation detection and non-intrusive inspection equipment. 2. Sole-source award to Leidos, Inc. raises questions about competition and potential cost efficiencies. 3. Long-term contract duration (911 days) suggests a need for sustained, specialized support. 4. The award falls under the 'Electronic and Precision Equipment Repair and Maintenance' NAICS code. 5. Geographic focus on California for this specific contract action. 6. Firm Fixed Price contract type aims to control costs for the government.
Value Assessment
Rating: fair
The contract value of $66.7 million over approximately 3 years for maintenance of specialized equipment appears substantial. Benchmarking this against similar contracts for radiation detection and non-intrusive inspection equipment maintenance is challenging without more specific details on the scope of services and equipment covered. However, given the sole-source nature, it is difficult to assess if the pricing represents optimal value for money compared to what might be achieved through a competitive process. The firm fixed price structure provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning only one vendor, Leidos, Inc., was solicited. This approach bypasses the standard competitive bidding process. While sole-source awards can be justified for specialized services or when only one vendor possesses the necessary capabilities, it limits the government's ability to explore alternative solutions and potentially secure lower prices through competition. The lack of multiple bidders means there was no direct price comparison or market pressure to drive down costs.
Taxpayer Impact: Taxpayers may not be receiving the best possible price for these critical maintenance services due to the absence of a competitive bidding process. This could result in higher overall spending for the same level of service compared to a competed contract.
Public Impact
Ensures the operational readiness of critical radiation detection and non-intrusive inspection equipment used by U.S. Customs and Border Protection. Supports border security operations by maintaining technology that identifies illicit materials. Services are primarily focused within California, impacting operations in that region. Maintains specialized technical capabilities within the contractor workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potential cost savings.
- Long-term contract duration without competition may reduce incentives for contractor efficiency.
- Reliance on a single vendor for critical equipment maintenance could pose supply chain risks.
Positive Signals
- Firm Fixed Price contract provides cost certainty for the government.
- Leidos, Inc. is an established contractor with experience in similar technical services.
- Contract ensures continued operational capability of essential security equipment.
Sector Analysis
This contract falls within the broader sector of defense and security equipment maintenance and support services. The market for specialized electronic and precision equipment repair is competitive, but contracts for highly specific or proprietary systems, like advanced radiation detection and non-intrusive inspection (NII) equipment, often lean towards sole-source or limited competition due to unique technical requirements and existing vendor relationships. The total addressable market for such specialized maintenance services is difficult to quantify precisely but is significant given the government's ongoing investment in border security and threat detection technologies.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Leidos, Inc. suggests that the primary focus is on leveraging established capabilities. This could limit opportunities for small businesses to participate directly in this specific contract, although they may be involved further down the supply chain if Leidos utilizes their services.
Oversight & Accountability
Oversight for this contract would typically fall under the U.S. Customs and Border Protection (CBP) within the Department of Homeland Security (DHS). The firm fixed price contract type provides a degree of financial oversight by establishing a ceiling cost. Transparency regarding the justification for the sole-source award and performance metrics would be key areas for public scrutiny. The DHS Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Homeland Security - Equipment Maintenance
- U.S. Customs and Border Protection - Technology Procurement
- Radiation Detection Equipment Maintenance
- Non-Intrusive Inspection Equipment Services
Risk Flags
- Sole-source award
- Lack of competition
- Potential for cost overruns without competitive pressure
Tags
dhs, customs-and-border-protection, leidos-inc, sole-source, definitive-contract, firm-fixed-price, equipment-maintenance, radiation-detection, non-intrusive-inspection, california, electronic-and-precision-equipment-repair-and-maintenance, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $66.7 million to LEIDOS, INC.. PREVENTATIVE AND CORRECTIVE MAINTENANCE OF RADIATION DETECTION EQUIPMENT (RDE) AND LARGE SCALE (LS) NON- INTRUSIVE INSPECTION (NII) EQUIPMENT
Who is the contractor on this award?
The obligated recipient is LEIDOS, INC..
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).
What is the total obligated amount?
The obligated amount is $66.7 million.
What is the period of performance?
Start: 2024-09-15. End: 2027-03-15.
What is the specific type and model of radiation detection and non-intrusive inspection equipment covered by this contract?
The provided data does not specify the exact types or models of Radiation Detection Equipment (RDE) and Large Scale (LS) Non-Intrusive Inspection (NII) equipment. However, based on the context of U.S. Customs and Border Protection (CBP) operations, this likely includes advanced scanning systems used at ports of entry, such as cargo scanners (e.g., X-ray, gamma-ray), radiation portal monitors, and potentially handheld detection devices. The maintenance services would cover preventative checks, calibration, diagnostics, and corrective repairs to ensure these systems function reliably and accurately in identifying potential threats and contraband.
What is Leidos, Inc.'s track record with similar maintenance contracts for DHS or other federal agencies?
Leidos, Inc. is a major government contractor with extensive experience in providing technical services, including maintenance and sustainment for complex systems across various federal agencies, including the Department of Homeland Security. They have a history of supporting defense, intelligence, and civilian agencies with IT, logistics, and specialized engineering services. While specific details on RDE and NII equipment maintenance contracts are not provided, Leidos's broad capabilities suggest they possess the technical expertise and infrastructure to handle such requirements. Past performance reviews and contract databases would offer more granular insights into their specific success rates and client satisfaction on comparable programs.
How does the $66.7 million contract value compare to historical spending on RDE and NII equipment maintenance by CBP?
Without historical spending data specifically for RDE and NII equipment maintenance by CBP, a direct comparison is not possible. However, $66.7 million over approximately three years represents a significant investment in maintaining critical security infrastructure. Given the specialized nature of the equipment and the sole-source award, this value might be consistent with the cost of specialized technical support for advanced systems. To provide a more accurate benchmark, one would need to analyze CBP's budget allocations and contract awards for similar maintenance services over previous fiscal years, looking for trends in contract values and durations.
What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?
The provided data does not detail the specific Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for maintenance contracts of this nature, typical KPIs would likely include response times for service calls, equipment uptime percentages, Mean Time Between Failures (MTBF), Mean Time To Repair (MTTR), and the successful completion rate of preventative maintenance schedules. SLAs would define the expected standards for these metrics, often with associated remedies or incentives for performance. These would be crucial for ensuring the operational readiness of the RDE and NII equipment.
What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically stems from specific circumstances where only one responsible source can provide the required supplies or services. For this contract, potential justifications could include: 1) Unique technical expertise: Leidos, Inc. may be the only entity possessing the proprietary knowledge, specialized tools, or certifications required to maintain the specific RDE and NII equipment. 2) Urgency: An urgent need may exist that precludes the time required for a competitive solicitation. 3) Existing infrastructure: Leidos might have existing, integrated systems or personnel already deployed for this equipment, making a transition to another vendor impractical or excessively costly. A formal justification document (e.g., a Justification and Approval for Other Than Full and Open Competition) would typically be required and publicly accessible.
What is the potential impact of this contract on the broader market for RDE and NII equipment maintenance?
A sole-source award of this magnitude to a single incumbent contractor can have a chilling effect on the broader market for RDE and NII equipment maintenance. It signals to potential competitors that opportunities for this specific equipment may be limited or exclusively tied to the incumbent. This can discourage new entrants or smaller firms from developing the specialized capabilities needed to compete in the future. While it ensures continuity of service for CBP, it may also reduce overall market innovation and price competition in the long run, potentially leading to higher costs for similar services across the government if other agencies use similar equipment.
Industry Classification
NAICS: Other Services (except Public Administration) › Electronic and Precision Equipment Repair and Maintenance › Electronic and Precision Equipment Repair and Maintenance
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - END USER
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70B04C24Q00000386
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 10260 CAMPUS POINT DR STE 100, SAN DIEGO, CA, 92121
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $249,568,164
Exercised Options: $66,713,362
Current Obligation: $66,713,362
Actual Outlays: $36,655,259
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $284,643
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-15
Current End Date: 2027-03-15
Potential End Date: 2027-08-29 11:15:40
Last Modified: 2026-04-10
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